Gioele Rampinelli , Stefano del Bubba 24-03-2015

Service Marketing Minor assignment:

Lecturer: Richard WestTable of Contents:Byron Gioele RampinelliMc Donald Stefano del BubbaExecutive Summary, Introduction, Conclusion, comment - Group

Cover Page..........................................................................................................1 Table of Contents.................................................................................................2 Executive Summary.............................................................................................4 Introduction.........................................................................................................5 Positioning Byron.......................................................................................................5 Mc Donald................................................................................................6 Comment....................................................................................................8 Promotion Byron.8 Mc Donald..9 Comment.10 Product .- Byron........................................................................................................11 Mc Donald.12 Comment12 Place .- Byron.13 Mc Donald..14 Comment..14 Price .- Byron15 Mc Donald.15 Comment..16 People .- Byron..16 Mc Donald17 Comment..17 Process .- Byron..18 Mc Donald..18 Comment...19 Physical Evidence .- Byron19 Mc Donald.21 Comment..21 Conclusion..............................................................................................................22 Referencies............................................................................................................23 Appendix.......................................................................................................25

Executive Summary:The aim of this essay is to analyse Byron Burger and Mc Donald through le lenses of their marketing communication and 7Ps framework approach.The two companies are well known thanks to their hamburgers but they present many differences beside the main product and even in that itself.While Mc Donald is very affordable with a majority of child client, Byron is seen and positioned as a substitute for casual-dining restaurant where young adult, among others, can have an enjoyable dinner. In Fact they are tend not to be disappointed by the overall experience because of Byron high concentration and ability to provide the best experience possible for their clients.Byron main promotional investment is in their restaurant: From the architecture to the product passing through the employees training; everything is made to promote itself inside the restaurant rather than advertising outside, as McDonald does.In fact, Macdonald invest huge amounts of money in advertising and customers will be appealed by those advertisement and price saving more than by the overall experience.Advertisement at Mc Donald are standardize for each country as well as its products are standardized in all the world. To do so, they utilize a highly mechanized process which allows the product to be cooked in a record, uniform speed in all the world.Furthermore McDonald has created a huge range of product in order to appeal the mass market.The style of Byron consist in bypassing standardization and in concentrating more on differentiation - neighbourhood localization - making every restaurant unique and valuable. Its bringing the best food quality possible and reducing its menu to a simple and small range of product so to better concentrate in few products making them at best.We can therefore state that services are complex entities which, even when providing similar benefits to customers, presents itself in different manners and shades, which are evaluated by them consumer - on more levels whom will determine what a service really Means.So ultimately the power of defining a brand lies in consumers mind, whilst Marketers can try to shape by the same means consumers use to define the Service Provider the 7 Ps.

Introduction:

The aim of this essay is to analyse Byron Burger and Mc Donald through le lenses of their marketing communication. In fact we are going to outline several dimension through which the brands identity are perceived by consumers, therefore defining their Brand Knowledge and the relative Brand Equity. These dimensions are the 7 Ps, or Marketing mix, of Service Marketing whom perception ultimately determines the positioning of the brand in consumers mind.Through the text it will appear how these two similar services are, instead, really different; and how these differences lead them to conceive different ways and approaches to tackle consumer and Advertising& Communication Strategy. The Socio-Economic framework of this analysis is definable as being in tatters over the past few years, despite so the annual growth of the fast food industry has been 1.7% since 2009.It was reported last year that the fast food industry is worth 96.1bn (116bn, $160bn) to the UK economy.That's enough for over 33 billion Big Mac burgers or Much less Byron Classic.Every year, Britain's spend a whopping total of 29.4bn (35.4bn, $49bn) on fast food, says a survey from VoucherCodes.co.uk..Positioning:In order to analyse Byron and Mc Donalds Marketing Mix and compare these two Businesses we need to understand, first, their respective Positioning criteriaByronWhen in 2007 Byron Burger was entering the UK market it had to face an critical Positioning Dilemma. It would have been risky to enforce a similar positioning strategy to Burger King and MacDonalds, so Byron Played very smartly and effectively. Indeed, Byron acted very Creatively and tried to walk a new Path: to create an entirely new category of casual dining: gourmet burgers.( as per Peter Thomson>Brand Strategy>Creating a new product category) In this way they are still competing with e.g. Mc Donald but not in a Direct way . Byron is a pioneer of this category and have helped position the category of gourmet burgers inside the broader category of casual dining and restaurants (rather than the category of fast food). This position within a new category is fundamentally important for Byron. As a result, other new companies felt encouraged to enter the category. seeing the opportunity of a fertile market, on which to grow rather than fight.This positioning determine the biggest differences between Byron and Mc Donald and have deep influence over all the elements of Byron 7 Ps.Byron Communicate its positioning to consumers through various means and channels, especially by below the line techniques as its physical presence and tangible evidence, among others analysed below.. in the Byrons case positioning the service in the right spot of consumers mind results more from customer actual experience of the service, or of its evidence, rather than from conventional advertising efforts.Mc DonaldMcDonald has position itself as a low cost restaurant in the fast food sector,A narrow scope for a customer base and a low cost strategy made it one of the cheapest fast food on earth with the recent consequence, for public opinion, of resulting a low quality restaurant. In order to resolve this problem and recover a loss of sales, it has reposition itself changing image focusing on a healthier option as fast food.However it is still positioned as a family friendly and low cost restaurant in the fast food business. Families are very important for McDonald as we can see from the segmentation of its customers:McDonalds made market segmentation mainly according to age and life stage, its main customers are "Children" and the company pay a great attention in developing their loyalty by advertising principally the "happy meal' menu concentrating the focus on the surprise contained in every menu.In order to be appealing and to boost customer loyalty every menu has a different present, all of them being part of a collection which will be available for a limited time, this ensure that customers will be willing to come back in short period of time in order to complete the collection.The uniqueness and the high standard of the presents is assured by McDonald by making contract with important companies as Walt Disney which will help to defeat competitors and have always a new and up to time present in the Happy Meal menu.Furthermore, Instead of focusing on the single product for segmentation, MacDonald has decided to improve focus on people, employing "segment managers" responsible for matching tastes of their target group of people as Women, African-Americans, Children, Asian, exct. with relative products and marketing campaigns.For example to create and marketing their South-West Chicken salad for general market in US, segment managers had been crucial:Each segment teams create a positioning profile for the product, then creative teams use this to create adverts targeted to relative customers profiles.They have placed in the salad a core variety of ingredient in order to be appellant to the general market, they have focused on Latins tastes and flavours, a strong dressing has been designed to better matches the tastes of African-American community cause this precise segment is less incline to consider a salad as substitution for sandwiches, and for the Asian segment they have advertise it emphasizing the new taste of the salad and its large variety of ingredients.This collaboration has created a new salad and an advertisement which was concentrated on the possibility of being a substitute of normal sandwiches thanks to its variety of ingredients which created new taste and therefore being appealing to Latinos, African-American and Asian community and also to a general market in US with its large range of products.MacDonald also focus on geographical segmentation, precisely, the company understands that there are specific eating habit and cultural background in different geographical regions and understands the importance of analysing those differences in order to be successful where the differences are more marked.For example to enter in the Chinese market, after a first not successful attempt, it had to review its menu to better match Chinese taste therefore Macdonald has changed its strategy bringing much more chicken products which Chinese population are more likely to eat than beef. This change, directly caused by a geographical difference, helped McDonald to stay in Chinese market successfully and improve its development and learning process.Those adaptation are made possible by a constant information and data collection from every restaurant which are crucial to help managers understand how to market a product.

Comment:After a first overview of Mc Donald and Byron respective Positioning we can see how despite selling the same product they are perceived, and want to be perceived, by consumer as different Restaurant Concept. Fast Food VS Gourmet Burger whos going to win?! Consumer will vote with their wallets.

Promotion:

ByronThe heart of Byrons Promotion strategy is meaningfully outlined in Gondolas Group 2013 Annual report: >. Byron burgers promotional mix implies a varied set of techniques, which can be divided in two broad categories, Below the Line and Above the Line Marketing Promotion,Talking about Above the line Marketing, as per Conventional, paid to media owner and agency-created advertisements, we can observe that when Byron engage in such practices - posters, or outdoor advertising, no TV or Magazine - is keen to provide a vague, but interesting and eye-catching, piece of information or feeling, which would intrigue the consumer; thus providing a shady perspective over the brand identity but without focusing on any single dimension or feature of the 7 Ps, considered as more precise positioning criteria.This second purpose is, indeed, left to the physical evidence and other below the line elements, which we will comment later on.We can see a strategic move in this perspective. Indeed, Byron use Intriguing and captivating communication forms to get the Attention and, perhaps, interest of consumers and then they leave them the chance to experience and feel in first person what he/she has been exposed to. In fact, the each Individual store and experience will guide them to identify the precise positioning and the particular characteristics attributed to each Ps. This approach its economically really valuable and ensure there are no uncovered biases between marketing communication and consumer perception. In fact, the Identity communicated through outdoor marketing initiatives is too shady and general to be misunderstood; theres nothing more to understand than something cool and innovative is happening. If then, there will be some relationship between the service and the new customer, that will be a real relationship among physical evidences and people and it will be almost fully traceable and controllable. So we can see How Byron try to walk the path of AIDA Model exploiting a so call Through the line marketing program, combining various elements and apportion from marketing knowledge/intelligence to get to consumer action, satisfaction and loyalty. Furthermore, Identity and Positioning Communication through Below the line Marketing techniques includes Direct marketing initiatives like - Byron burger club - Social media marketing campaign and extensive use of Public Relation and Publicity..The Byron burger club and the social media marketing Campaigns are practices aimed to engage consumers in a dynamic relation with the Brand meanwhile presenting products and some physical evidence of the service ( stores pictures, employees, etc). Through PR and Publicity, instead, Byron aims to tell its story and tries to communicate its value proposition in the clearest way possible in order to create a solid image and brand Knowledge among the general Publics. This last Practice can be the most specific in characterizing the 7 Ps and could possibly cover them all depending on the focus of the article/mention. The turning point, so far achieved, is never ever loose consistency in this enormous amount of information released.Mc DonaldMcDonald exploits all channels of promotional mix utilizing principally an above the line strategy.The corporation has a huge economical power and a history of successful marketing campaigns, which made McDonald one of the top ten companies for brand awareness in the world.McDonald markets its brand exploiting all its power on TV, radio, cinema, online, poster sites and in the press (newspapers, magazines).Humanity is a central feature in McDonald recent marketing campaigns, it is mainly important to face its on-going changing process being more social friendly and healthy, restoring its centrality on happiness.This features are encountered in its advertisement campaign on television pay with love" during the 2015 Super bowl, in which it is shown how in restaurants it was possible to get a burger for free, by paying with loving acts like hugs or saying to a relative that you love him.This advertisement is focused on the fact that for the company is more important to make the experience happy and lovely for the customer than the profit itself.Another huge investment is reserved for sponsorship, MacDonald sponsors sport events like 2014 winter Olympics of Sochi or 2014 world cup in Brazil and 2015 international EXPO "nourishing the planet" in Milan.Those sponsorships are chosen for their relation with an image of supportiveness, healthy and quality food.However they continue their "old style" promotions price centred trough their "10 day promotion" like the famous pay 1 and get 1 free, and also new ideas like the "come to McDonald in pyjama and you will have breakfast for free".MacDonald has also a quality menu which consist in a monthly renewed menu giving an always new refreshing taste in order to satisfy gourmets customers.Comment:The main difference between the two regarded companies promotional mix is that Mc Donald is deeply involved in every kind of promotional tools, thanks to its enormous budget allocation possibility, wistl Byon walk a different path. In fact, Byron rely much more on Below the Line Marketing Technique and over its strong and innovative brand identity, communicated with much smaller, but yet effective, budget.

Product:

ByronThe product (hamburger) and its superior quality is the main value proposition of Byron Burgers, as they clearly communicate through their Slogan: Byron Proper Burgers.Proper, so something as its supposed to be done, hence, simplicity and good quality are the main drives guiding Byrons expansion. Stealing some words from the Founder Mr Byng: It doesnt need pineapple or Thai red curry sauce. A great hamburger is the classic hamburger that you find all over the States: good beef, soft bun, simple toppings, cooked properly.Indeed, The beef come from small farms in Scotland and is delivered daily, the burgers are ground fresh every morning and due to the menus simplicity and shortness, everything (bar the ice cream) is made on site.Furthermore, This high quality value proposition and the attention to customer experience is somehow protecting Byron from an hypothetic consumer driven healthy kick.This is, hopefully, true to the extent to which consumers would allow themselves the treat of a tasty Burger when the guilt is taken out from it by good quality ingredients, a pleasant atmosphere and ambience as well as superior customer service and experience. Byng keep explaining that the rationale which guide Byron Menus formulation is, again, simplicity and quality. In fact, . The aim here is do few things, but do them really well.Nevertheless, Byron does offer variation to its menu. In Fact, They make a very smart and successful use of of product innovation and extension designing and launching limited edition burgers periodically,, as well as two different kind of crafted beer: Byron Lager, Byron Pale Ale.In this way they are able to stick to their vision while also exploiting the possibilities hidden in different roots.

Mc DonaldMcDonalds product range design is focused in being appealing for a mass market, offering a large variety of products in order to allow the majority type of clients to be satisfied.An entire new breakfast product range has recently been made available through new McCafes store to attract customers which were leaving to other fast food as Starbucks.Precisely its product range varies from burgers to chicken sandwiches to chicken Mc nuggets to apple pies to soft serve ice cream to apple slices. Along with the beverages, which range from soda to milk to apple juice to water to coffee. It is also important to point out that McDonald just introduced a Vegetarian Menu.McDonald fights to offer a standardized service worldwide, everywhere it is possible to find the same typical McDonald product with the same quality, this is the expectancy of the customer and this is what its Brand Identity requires.Strict and blind standardization from the franchisor however is not always the right choice to face a changing market. This is why MacDonald also gives franchise a little of local control and a gap for creativity. They are given the autonomy to adapt products to better respond to the market and gain shares, while the corporation maintain the degree of standardization and quality control.This process has been improved in geographic regions where the culture and habit behaviour are very different from the usual American one. In those places McDonald adaptability is remarkable and allows the company to overcome huge cultural differences. Indeed It continues to improve its worldwide brand awareness also without its famous and celebrated products, like in India or in china where McDonald do not sell its flagship product: the Big Mac.Comment:We can identify another major difference between Mc Donald and Byron at a product quality level as well as on a product range level. In fact, Mc Donald product strategy is to offer an acceptable quality in a rich variety of tasteful alternatives; instead, Byron Focus on a limited range of High Quality Products.

Place:

ByronPlace, hence the distribution network, is another fundamental dimension to be addressed properly as a multiplier for all other aspects of Byron service marketing mix.In fact, as the products must be appealing to customer it must also be accessible. Addressing all the consumptions situations by a strategic location of stores is critical for the success of a business. Indeed, the Place dimension of a service can be determinant for the performance of stores and can even assume greater importance than the product itself and value proposition. This doesnt mean that a firm can conquer the market just through strategic placement of outlets, regardless the product and value; nevertheless, it does mean that choosing the wrong place can, and does, determine the failure of a single business unit, even if the business in general is healthy and meaningfully positioned in consumers mind.In fact, An example of such framework is provided by Byron. As we mentioned, Byron Brand is generally well accepted and positively perceived and, so far, he suffered just from one real hiccup. This episode consisted in the restaurant in Guildford closing out business swiftly after its opening. The unfortunate Guildford venue is a perfect example of failure due to a placing error : We chose the wrong bit of town. as Tom Byng Commented.After this experience Byron and its management team learnt the lesson and they are now enforcing a more strategic perspective over the location of new stores. Now Byron makes sure each site is close to some form of entertainment, so to be able to exploit its valuable brand where and when consumers are most keen to participate with it, for example in a pre-cinema, mid-shop or post-pub consumption situation. Furthermore, The link between Byron consumption and other service participation (shopping, cinema, pub) can improve brand recall and awareness in the mind of consumers who will be keener to recall also Byron when thinking to the associated service.

Mc DonaldMcDonald reserves a very strong attention on placement, Place has been considered as the most important P of the marketing mix.through its numerous locations throughout the world it is possible to reach the 52 million customers a day which make McDonald world leader in the fast-food industry.McDonald is proud that Nearly 50% of the U.S. is less than three minutes away from the nearest restaurant, this prove its leadership in customer satisfaction.In order to have the best strategic placement, the company reserve for itself the final choice to place a new restaurant, bypassing and improving the franchise choice through accurate study carried on from the McDonald University.Anyhow McDonald is willing to be present in every strategic commercial hub to boost even more its popularity making the restaurant an advertisement itself.Comment:Both the company analyzed understand the fundamental value of strategic placement and act with respect to their financial power and positioning - price being particularly influent to this point. This means that Mc Donalds high budget, brand awareness and recognition along with its low price allow a really aggressive expansion and transform almost every crowded location in the Perfect spot for a Mc Donald store. On the other hand Byron have to use a more careful touch strategically thinking were its brand awareness can be better exploited and where its not-too-affordable price would be accepted.In simple terms where you can find Byron, youll definitely find Mc Donald, but where you can find a Mc Donald you may never find Byron.

Price:

ByronByron use price to differentiate its service from low end fast food, identifying its business venture as a upmarket casual dining chain. This claim is supported by great product and service quality which, in turns, guarantee a distinctive positioning in consumers mind as Gourmet Burger, a valid alternative to a full restaurant experience, not to fast food. In this way, even with a cheapest burger of 6,95 , Byron is not considered an expensive fast food but rather an affordable restaurant with general expenses around 15/17 per head . Interestingly we can note the thoughts of the founder which refers to hamburger as the Ultimate comfort Food: . (JONATHAN MOSES 10 May 2013)

Mc Donald:Macdonald physical evidence is standardize in all the country it make business, it utilize an homogenous look for both decor and staff uniform across all the countries.It has recently changed from strong colours as red and yellow to more soft and "healthy-like" colours as green and yellow,The company has chosen to reposition the brand to be seen as a healthier fast food. The reposition gave to McDonald a diverse interior design which is made to make feel customers calm and comfortable and happy in a more comfort-like and chilling restaurant.To attract their principle clients "children" many Mc Donald got playgrounds which are also standardized with models and colours to be unique in McDonald's restaurants.Comment:Mc Donalds physical evidence perfectly identify the standardization and globalization perspective of the American multinational as well as its value proposition as safe and known companion. This perspective is clearly clashing with Byron Vision which enforce the highest form of differentiation. In fact, through its physical evidence, it shades every single shop in accordance with the surrounding lifestyle, therefore providing a unique and valuable experience each time. Nonetheless Consistency is preserved in Byron, too, as we enlighten in our analysis.

Conclusion

Trying to rep up our analysis in a meaningful conclusion we can say thatFrom a marketing point of view McDonald is very strong. This old company has always been able to market itself at its best and like other old companies its image became so strong to be seen almost as a part of the American culture and history of food. In fact it is considered that due to its grandeur is quite impossible for McDonald to fail .Its strong and constant advertisement have always made the product much more appetizing than what you can actually find in the restaurant. This strategy is socially accepted also because it encounter the expectation of the customers.However through those advertisement MacDonald has been able to boost the business constantly creating a very strong brand identity which people are aware of. The happiness and easy-way atmosphere which MacDonald has created have made possible for the clients to bypass the quality of the product to be more concentrated on enjoying the experience of a McDonald restaurant at a really convenient price.Byron is very different from this point of view, it dont advertise itself so strongly, it principally relies to its power as independent restaurant to build loyalty customer through its personal, service, physical evidence and quality product.In conclusion we can state that those businesses represents two very different, but yet successful, food-business model, one relying on quality and below the line marketing and the other relying on massive advertisement and low cost leadership..The final decision of whats best lies in each individual consumers personality and priorities

References:.

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Appendix:

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